Why in News?
The Employees’ Provident Fund Organisation (EPFO) is launching the E-PRAAPTI portal to help users trace and activate inactive PF accounts. This governance and social security topic is important for aspirants preparing through IAS coaching in Hyderabad, UPSC coaching in Hyderabad, and UPSC online coaching.
E-PRAAPTI Portal
The E-PRAAPTI Portal (EPF Aadhaar-Based Access Portal for Tracking Inoperative Accounts) is a new digital platform developed by EPFO to address the issue of unclaimed and inactive provident fund accounts.
Background: EPF and UAN System
• EPF (Employees’ Provident Fund) is a mandatory savings scheme for salaried workers.
• Managed by EPFO under the Ministry of Labour and Employment.
• In 2014, EPFO introduced the Universal Account Number (UAN):
• A 12-digit unique ID for each employee.
• Enables portability of PF accounts across jobs.
What is an Inoperative EPF Account?
• A PF account becomes inactive when:
• No contributions are made for 36 months after leaving employment.
• The account is not linked to the UAN.
• Such accounts often remain unclaimed, leading to inefficiency in fund utilization.
Key Features of E-PRAAPTI Portal
1. Aadhaar-Based Authentication
• Uses Aadhaar verification for secure login.
• Ensures identity validation and fraud prevention.
2. Tracking Old Accounts
• Helps users locate multiple or forgotten PF accounts.
3. UAN Linking and Activation
• Enables seamless linking of old Member IDs with UAN.
• Facilitates account consolidation.
4. Member Profile Update
• Allows correction of personal details such as name, DOB, etc.
5. Phased Implementation
• Initially Member ID-based access.
• Future expansion to assist users without Member ID details.
Significance of the Portal
• Financial Inclusion: Ensures workers can access their savings easily.
• Ease of Doing Business: Simplifies compliance for employees switching jobs frequently.
• Reduction of Unclaimed Funds: Activates dormant accounts, improving fund utilization.
• Digital Governance: Promotes paperless, transparent, and efficient service delivery.
Conclusion
The E-PRAAPTI portal is a significant step toward strengthening India’s digital governance and social security framework by ensuring better access to employee savings. For aspirants preparing through IAS coaching and civils coaching in Hyderabad, this topic is highly relevant for GS2 Governance and GS3 Economy/Society.
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